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Why Does Every Business Have an App?
Why does it feel like every business is pushing you to download their app these days? From restaurants and retailers to your local gym, it seems like everyone is jumping on the app bandwagon. Is this just a case of businesses dealing with a serious case of FOMO, or is there a reason for the madness?
In today’s edition, we’re exploring why the rise of business apps is in fact a strategic advantage for a business. Let’s dive in.
Consumer Trends:
Here are some of the staggering statistics surrounding the use of mobile apps:
The Apple App Store has nearly 2 million apps available for download.
The Google Play Store has more apps than the App Store, with approximately 2.87 million apps available for download.
In 2023, the US app market generated nearly $45 Billion.
Nearly 90% of mobile internet usage is spent in apps.
Mobile apps have a 157% higher conversion rate than mobile websites.
The Appeal of Apps:
Outside of the staggering figures listed above, businesses embrace apps for 4 Key Reasons:
Enhanced User Experience:
Apps outperform websites on mobile devices. This is because apps are fully downloaded in advance from the App Store. This feature allows for the app to run faster, compared to websites which need to download one page at at time. This feature also allows users to use the app while they are offline or without an internet connection.
Apps also have the added benefit of using your phone’s built in sensors like its camera or GPS, something which websites are unable to do.
Push Notifications & Advertising:
Push notifications give businesses a direct line of communication to their customer base.
When a business has a special offer or coupon, it can send a notification straight to its audience, knowing with a high probability of certainty that it will be seen, clicked, and opened.
The business is in control of when that notification is sent. So if there’s a lunch special at 12pm, it can send a notification to customers at 11am to give them time to take advantage of the offer.
This stands in stark contrast to traditional advertising methods like video ads, commercials, and billboards, where there’s no guarantee that the intended audience will ever see the message.
Apps have the added benefit that businesses are able to show 3rd Party ads within the app for additional revenue if they so choose. Blocking ads within apps is much more difficult than blocking them on websites.
Digital Real Estate
Having your app icon on a user’s phone screen is the equivalent of having a billboard that’s constantly in their face.
Even if it’s indirect, the presence of a business logo on their phone screen is enough to have a customer thinking about a business.
The next time customers need the product or service your business is offering, they’re more likely to go to your business rather than to a competitor they may have forgotten.
Controlled Environment
Apps keep users fully immersed in a brand’s ecosystem, showing only what the business wants them to see.
Unlike mobile websites, apps minimize distractions, eliminate irrelevant ads, and reduce the chances of users navigating away.
As a result, users spend an average of 90% of their mobile time within apps.
What are the Costs to Develop?
Business owners will look at the advantages of having an app and will consider building one themselves. Below is a summary of findings of the cost and timeline for developing different types of apps:
App Type | Cost Range | Development Timeline | Examples |
|---|---|---|---|
Simple Apps | $5,000 - $60,000 | 2-4 months | Calculator apps, clock apps, to-do list apps. |
Mid-Level Apps | $50,000 - $200,000 | 4-6 months | Food delivery apps, budgeting apps, chat apps. |
Complex Apps | $90,000 - $350,000 | 6-12 months | Gaming apps, telehealth apps, trading platforms. |
Obviously, the more features, the more complex the app becomes and more expensive it is to develop.
Businesses also have to be mindful that developing for both iOS and Android increases the cost of development compared to developing for just one platform.
Finally, outside of development, businesses also have to consider costs of 3rd party integrations (using outside software within the app) and the cost of ongoing maintenance.
Sources:
See You on the Next One!
— Oleg